Gun Laws & Legislation

Global Digital Solutions, makers of “Smart Gun” technology, to buy Remington?

By Alan Clemons, Gun Digest

News broke Tuesday about the proposed purchase by GDSI, which claims it is “positioning itself as a leader in providing cyber arms manufacturing, complementary security and technology solutions and knowledge-based, cyber-related, culturally attuned social consulting in unsettled areas.”

On its website, GDSI also says it has announced “the first in what it intends will be a series of agreements to acquire leading American gun manufacturers and distributors.” A slider graphic states the company “is committed to ensuring these enduring brands continue and continue to be the best America can build,” and then shows logos for Beretta, Springfield Armory, SigSauer, Bushmaster, Windham Weaponry, Heckler & Koch, Smith & Wesson, Remington, Mossberg, Kahr Arms, Colt, Kimber, Savage Arms, Ruger, CMME and one other that was indistinguishable.

According to The Outdoor Wire, Remington called the proposed purchase “attention seeking in its worst form” and said it would respond further today.

Richard J. Sullivan, GDSI Chairman and CEO, said the potential is great for strong revenue growth with Remington and its law enforcement, tactical and recreational divisions. Remington in February announced what it calls “an expansion” from its New York home of almost 200 years to Huntsville, Ala. Reports following the formal announcement termed the deal a relocation, although Remington officials have not publicly stated such.

Government officials in Alabama, Huntsville, Madison County and some outlying areas helped with a major tax incentive package to lure Remington to the city of about 200,000. Officials in Athens, another city about 40 miles west of Huntsville, voted this week to chip in $250,000 to help purchase the new Remington facility.

Sullivan said his company’s business model “takes advantage of market trends, technological advances and industry consolidations to fuel profitable growth, presents a value proposition that is perfectly suited to the military armament industry, an industry that is heavily fragmented and evolving rapidly toward a RFID/WiFi-enabled technology platform.

“In this dynamic environment, we see enormous opportunity to consolidate this market with a program of targeted acquisitions, including the proposed Freedom transaction. Technological convergence is the future in the cyber/smart arms arena and we’re eager to leverage our proven history of success by helping Freedom and others navigate the transition from analog to digital.

Global Digital Solutions also announced proposed purchases of a technology and development services firm with annual revenue of approximately $25 million and a military and law enforcement supply and distribution company with annual revenue of approximately $30 million. The proposed purchases are not final.

What is RFID Technology?

GDSI earlier this year announced GDSI Gatekeeper, which it says is a “suite of technology-enhanced services that offer personalized, digital small arms safety and security solutions in commercial and military-related markets.”

The company says GDSI Gatekeeper combines advanced Radio Frequency Identification (RFID) technology with web-based wireless capabilities, will provide commercial and military customers with three essential safety and security benefits:

  • Encrypted, password-protected, digital, trigger-locking capability.
  • Secure, real-time online tracking.
  • Encrypted, cloud-enabled databases.

“We’re extremely excited about the potential for GDSI Gatekeeper,” said GDSI’s Sullivan. “This revolutionary suite of services represents a real breakthrough by leveraging the power of web-based, digital technology to enhance safety and security in the small arms arena, both in the commercial and military sectors.

“We think of it as personalized gun control and we believe the accessible worldwide market represents a multibillion dollar opportunity for GDSI” Sullivan said.

Gun control? Bad choice of words right there, Mr. CEO. That won’t go over well no matter how you meant it or how you try to spin it once the poo hits the fan.

GDSI says recent reports from the United States Bureau of Alcohol, Tobacco and Firearms state that an annual average of nearly 3.5 million firearms were manufactured in the United States over the past eight years. GDSI Gatekeeper’s encrypted digital locking device could be easily retrofitted into existing firearms or it could be included in the manufacturing process itself.

The ATF also reports that there are roughly 130,000 federally licensed firearms dealers in the United States, including some 51,000 retail gun dealers, 7,300 pawn shops, and 61,000 collectors.  In addition, approximately one-third of U.S. households currently own at least one firearm.  All told, the manufacturing of firearms and ammunition represents an $11 billion industry in the United States.